JERUSALEM (Reuters) – Euroclear Bank will join the Tel Aviv Stock Exchange (TASE) as the first financial institution to become a trustee, they said on Monday.
The entry into force next month will allow Brussels-based Euroclear to access TASE directly without engaging in commercial activities, while providing settlement services and assets for local Israeli securities.
Euroclear has similar arrangements with exchanges in Argentina and Mexico.
Frank Slagmollen, deputy head of global equity markets at Euroclear, said the bank has a significant number of institutional clients trading in Israel, but currently needs to move through third countries.
Settling Israeli tools will be safer and easier for its customers and will further strengthen its global network, he told Reuters.
TASE, which is struggling with write-offs and declining trading volumes, became a public company this month after completing an initial public offering.
"We hope … we will get more players who are members of the trust, so that they have direct access to the Israeli market," said Orly Greenfeld, TASE vice president.
Reporting by Stephen Scheer; edited by John Stonestret